Revenue growth is solid, driven by the asset-light franchise model, but the earnings decline and EPS erosion from share conversion are headwinds. The subsequent RMB 3.35B bond issuance at 2.25% will increase leverage modestly. Watch for full-year 2026 guidance and whether HWC's margin improvement can offset HWI's stagnation.
Price Chart
Executive Summary
H World Group reported H1 2026 results: total revenue grew 11.0% YoY to RMB 13,117 million, driven by a 22.9% surge in manachised/franchised hotel revenue. However, net income attributable to H World fell 1.8% to RMB 2,394 million, and basic EPS declined from RMB 0.79 to RMB 0.77. The company completed the conversion of its US$500M convertible notes into equity, reducing debt but increasing share count. A subsequent event notes a RMB 3,350 million bond offering at 2.25% due 2031. The revenue growth is positive, but the earnings decline and increased share count temper the outlook.
Key Facts
- Total revenue for H1 2026 was RMB 13,117 million, up 11.0% from RMB 11,821 million in H1 2025.
- Net income attributable to H World was RMB 2,394 million, down 1.8% from RMB 2,438 million in H1 2025.
- Basic EPS fell to RMB 0.77 from RMB 0.79; diluted EPS fell to RMB 0.74 from RMB 0.77.
- Manachised and franchised hotel revenue grew 22.9% to RMB 6,592 million, while leased/owned hotel revenue declined 3.3% to RMB 5,983 million.
- Adjusted EBITDA (segment measure) rose 21.7% to RMB 4,583 million from RMB 3,766 million.
- HWC (China) segment revenue grew 13.8% to RMB 10,907 million; HWI (International) revenue declined 1.4% to RMB 2,225 million.
- Convertible senior notes due 2026 (US$500M principal) were converted into 13 million ADSs in May 2026, adding RMB 3,428 million to additional paid-in capital.
- Share repurchases totaled RMB 1,857 million in H1 2026 vs. RMB 443 million in H1 2025.
- Cash dividends declared in H1 2026 totaled approximately RMB 2,875 million (US$0.13/ordinary share in March 2026).
- Subsequent event: In September 2026, the company issued RMB 3,350 million of 2.25% senior unsecured bonds due 2031.
Financial Impact
Revenue up 11.0% YoY but net income down 1.8%; EPS down ~2.5% on basic basis. The convertible note conversion eliminated ~US$500M debt but added dilution.
Risk Factors
- HWI (International) revenue declined 1.4% YoY, indicating continued weakness in European operations.
- Foreign exchange loss of RMB 117 million in H1 2026 vs. a gain of RMB 574 million in H1 2025, a swing of RMB 691 million.
- Impairment losses increased to RMB 66 million from RMB 38 million, reflecting continued underperformance of certain hotels.
- Share count increased by ~80 million shares (basic) due to convertible note conversion, diluting EPS.
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-109789 |
| Document: htht-20260923x6k.htm | 0001104659-26-109789 |
| Document: 0001104659-26-109789-index-headers.html | 0001104659-26-109789 |
| Document: 0001104659-26-109789-index.html | 0001104659-26-109789 |
| Document: 0001104659-26-109789.txt | 0001104659-26-109789 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Institutional Cluster | $46.31 | awaiting T+5 | — | $47.35 (−2.25%) |
Oct 13, 2026 13d ago | SC 13G | $44.17 $46.58 | ▲ +5.46% | ▲ +6.61% | $47.35 (+7.20%) |
Sep 23, 2026 4w ago | 6-K | $42.78 $42.80 | ▲ +0.05% | ▲ +0.72% | $47.35 (+10.68%) |
Sep 16, 2026 5w ago | 6-K | $42.72 $42.78 | ▲ +0.14% | ▼ −2.42% | $47.35 (+10.84%) |
Sep 10, 2026 6w ago | 6-K | $43.01 $43.21 | ▲ +0.47% | ▲ +0.96% | $47.35 (+10.09%) |
Sep 4, 2026 7w ago | 6-K | $45.77 $43.12 | ▼ −5.79% | ▼ −4.58% | $47.35 (+3.45%) |
Aug 17, 2026 10w ago | 6-K | $46.61 $48.64 | ▲ +4.36% | ▲ +5.55% | $47.35 (+1.59%) |
Aug 17, 2026 10w ago | Press Release | $46.61 $48.64 | ▲ +4.36% | ▲ +5.55% | $47.35 (+1.59%) |
Aug 15, 2026 10w ago | Institutional Cluster | $46.61 $48.64 | ▲ +4.36% | ▲ +5.55% | $47.35 (+1.59%) |
Aug 5, 2026 11w ago | 6-K | $42.34 $41.25 | ▼ −2.57% | ▼ −2.93% | $47.35 (+11.83%) |
US Market Status
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